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Last Updated : Nov 28, 2018 04:33 PM IST | Source: Moneycontrol.com

Buy HEG; target of Rs 5750: ICICI Direct

ICICI Direct is bullish on HEG has recommended buy rating on the stock with a target price of Rs 5750 in its research report dated November 27, 2018.

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ICICI Direct's research report on HEG


The board of HEG has approved a proposal to buy back up to 13,63,636 equity shares comprising 3.41% of the total paid-up equity share capital for an aggregate amount not exceeding Rs 750 crore. The buyback price has been fixed at Rs 5500/share. The buyback would be done through the tender offer route and is subject to approval of the shareholders by means of a special resolution through a postal ballot. The public announcement setting out the process, timelines and other requisite details will be released in due course by the company and will be in accordance with buyback regulations.


Outlook


We continue to value the company at 10x FY20E EPS of Rs 575 thereby arriving at a target price of Rs 5750. We maintain our BUY rating on the stock. In addition to healthy demand prospects, the capacity expansion announced by HEG will provide healthy revenue visibility over a medium term. Hence, this reiterates our positive view on the stock.


For all recommendations report, click here


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First Published on Nov 28, 2018 04:33 pm
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